Selected information for 5 companies is reproduced below: a) Calculate the net profit ratio for each of the companies below. Please make sure your final answer(s) are in percentage form and are accurate to 2 decimal places. (For example: 12.34%) Zcom Inc. X-cell Inc. Velor Inc. Allarco Inc. Gulf Corp. $75,000 Net Income Net Sales Net profit Ratio $93,000 $67,000 $17,000 $15,000 164,000 188,000 96,000 54,000 123,000 b) Which of the companies is the most profitable according to the net profit ratio? c) Which of the companies generates the least profit as a percentage of sales?
Selected information for 5 companies is reproduced below: a) Calculate the net profit ratio for each of the companies below. Please make sure your final answer(s) are in percentage form and are accurate to 2 decimal places. (For example: 12.34%) Zcom Inc. X-cell Inc. Velor Inc. Allarco Inc. Gulf Corp. $75,000 Net Income Net Sales Net profit Ratio $93,000 $67,000 $17,000 $15,000 164,000 188,000 96,000 54,000 123,000 b) Which of the companies is the most profitable according to the net profit ratio? c) Which of the companies generates the least profit as a percentage of sales?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text:Selected information for 5 companies is reproduced below:
a) Calculate the net profit ratio for each of the companies below. Please make sure
your final answer(s) are in percentage form and are accurate to 2 decimal places. (For
example: 12.34%)
Zcom Inc.
X-cell Inc.
Velor Inc.
Allarco Inc.
Gulf Corp.
$93,000
$67,000
$75,000
$17,000
$15,000
Net Income.
Net Sales
Net profit Ratio
164,000
188,000
96,000
54,000
123,000
b) Which of the companies is the most profitable according to the net profit ratio?
c) Which of the companies generates the least profit as a percentage of sales?
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